guidelines procurement under ibrd loans and ida credits - bảng tiếng anh

GUIDELINES PROCUREMENT UNDER IBRD
LOANS AND IDA CREDITS
May 2004
Revised October 1, 2006
This is a MS Word version of the official Procurement Guidelines. If altered, this
document no longer holds its official status

Purpose 6
General Considerations 6
Applicability of Guidelines 7
Eligibility 7
Advance Contracting and Retroactive Financing 8
Joint Ventures 8
Bank Review 9
Misprocurement 9
References to Bank 9
Fraud and Corruption 9
Procurement Plan 11

A. General 12
Introduction 12
Type and Size of Contracts 12
Two-Stage Bidding 12
Notification and Advertising 13
Prequalification of Bidders 13
B. Bidding Documents 14
General 14
Validity of Bids and Bid Security 14
Language 15
Clarity of Bidding Documents 15
Standards 16

Use of Brand Names 16
Pricing 17
Price Adjustment 17
Transportation and Insurance 18
Currency Provisions 18
Currency of Bid 18
Currency Conversion for Bid Comparison 19
Currency of Payment 19
Terms and Methods of Payment 19
Alternative Bids 20
Conditions of Contract 20
Performance Security 20
Liquidated Damages and Bonus Clauses 20
Force Majeure 21
Applicable Law and Settlement of Disputes 21
C. Bid Opening, Evaluation, and Award of Contract 21
Time for Preparation of Bids 21
Bid Opening Procedures 21
Clarifications or Alterations of Bids 22
Confidentiality 22
This is a MS Word version of the official Procurement Guidelines. If altered, this
document no longer holds its official status.
2
Examination of Bids 22
Evaluation and Comparison of Bids 22
Domestic Preferences 23
Extension of Validity of Bids 24
Postqualification of Bidders 24
Award of Contract 24
Publication of the Award of Contract 24

Rejection of All Bids 25
Debriefing 25
D. Modified ICB 25
Operations Involving a Program of Imports 25
Procurement of Commodities 26

General 27
Limited International Bidding 27
National Competitive Bidding 27
Shopping 28
Direct Contracting 28
Force Account 29
Procurement from United Nations Agencies 29
Procurement Agents 29
Inspection Agents 29
Procurement in Loans to Financial Intermediaries 30
Procurement under BOO/BOT/BOOT, Concessions and Similar Private Sector
Arrangements 30
Performance-Based Procurement 30
Procurement under Loans Guaranteed by the Bank 31
Community Participation in Procurement 31
 !"#$%&'  (
Scheduling of Procurement 32
Prior Review 32
Post Review 34
 !'()
Preference for Domestically Manufactured Goods 35
Preference for Domestic Contractors 36
 (!*(
Purpose 37

Responsibility for Procurement 37
Bank’s Role 37
Information on Bidding 38
Bidder’s Role 38
Confidentiality 38
Action by the Bank 39
This is a MS Word version of the official Procurement Guidelines. If altered, this
document no longer holds its official status.
3
Debriefing 39
This is a MS Word version of the official Procurement Guidelines. If altered, this
document no longer holds its official status.
4
Acronyms
BOO Build, own, operate
BOOT Build, own, operate, transfer
BOT Build, operate, transfer
CIF Cost, Insurance, and Freight
CIP Carriage and Insurance Paid (place of destination)
CPT Carriage Paid To (named place of destination)
DDP Delivered Duty Paid
EXW Ex works, Ex factory, or Off the Shelf
FCA Free Carrier (named place)
GNP Gross National Product
IBRD International Bank for Reconstruction and Development (World Bank)
ICB International Competitive Bidding
IDA International Development Agency
LIB Limited International Bidding
NCB National Competitive Bidding
NGO Nongovernmental organization

PAD Project Appraisal Document
SA Special Account
SBDs Standard Bidding Documents
UN United Nations
UNDB United Nations Development Business
This is a MS Word version of the official Procurement Guidelines. If altered, this
document no longer holds its official status.
5


1.1 The purpose of these Guidelines is to inform those carrying out a project that is
financed in whole or in part by a loan from the International Bank for Reconstruction
and Development (IBRD) or a credit or grant from the International Development
Association (IDA),
1
of the policies that govern the procurement of goods, works, and
services (other than consultant services)
2
required for the project. The Loan Agreement
governs the legal relationships between the Borrower and the Bank, and the Guidelines
are made applicable to procurement of goods and works for the project, as provided in
the agreement. The rights and obligations of the Borrower and the providers of goods
and works for the project are governed by the bidding
3
documents, and by the contracts
signed by the Borrower with the providers of goods and works, and not by these
Guidelines or the Loan Agreements. No party other than the parties to the Loan
Agreement shall derive any rights therefrom or have any claim to loan proceeds.
*
1.2 The responsibility for the implementation of the project, and therefore for the

award and administration of contracts under the project, rests with the Borrower.
4
The
Bank, for its part, is required by its Articles of Agreement to “…ensure that the
proceeds of any loan are used only for the purposes for which the loan was granted,
with due attention to considerations of economy and efficiency and without regard to
political or other non-economic influences or considerations,”
5
and it has established
detailed procedures for this purpose. While in practice the specific procurement rules
and procedures to be followed in the implementation of a project depend on the
circumstances of the particular case, four considerations generally guide the Bank’s
requirements:
(a) the need for economy and efficiency in the implementation of the project,
including the procurement of the goods and works involved;
(b) the Bank’s interest in giving all eligible bidders from developed and developing
countries
6
the same information and equal opportunity to compete in providing
goods and works financed by the Bank;
(c) the Bank’s interest in encouraging the development of domestic contracting and
manufacturing industries in the borrowing country; and
(d) the importance of transparency in the procurement process.
1
Procurement requirements of IBRD and IDA are identical, and references in these Guidelines to the Bank include both IBRD and
IDA, and references to loans include IBRD Loans as well as IDA credits or grants and project preparation advances (PPAs). References
to Loan Agreement includes Development Credit Agreement, Development Financing Agreement, Development Grant Agreement, and
Project Agreement. References to “Borrower” include the recipient of an IDA Grant.
2
References to “goods” and “works” in these Guidelines include related services such as transportation, insurance, installation,

commissioning, training, and initial maintenance. “Goods” includes commodities, raw material, machinery, equipment, and industrial
plant. The provisions of these Guidelines also apply to services which are bid and contracted on the basis of performance of a
measurable physical output, such as drilling, mapping, and similar operations. These Guidelines do not refer to Consultants’ services, to
which the current Guidelines: Selection and Employment of Consultants by World Bank Borrowers apply (referred to herein as
Consultant Guidelines).
3
For the purposes of these Guidelines, the words “bid” and “tender” shall have the same meaning.
4
In some cases, the Borrower acts only as an intermediary, and the project is carried out by another agency or entity. References in
these Guidelines to the Borrower include such agencies and entities, as well as Sub-Borrowers under on-lending arrangements.
5
The Bank’s Articles of Agreement; Article III, Section 5(b) and IDA’s Articles of Agreement; Article V, Section 1(g).
6
See para. 1.6, 1.7, and 1.8.
This is a MS Word version of the official Procurement Guidelines. If altered, this
document no longer holds its official status.
6
1.3 Open competition is the basis for efficient public procurement. Borrowers shall
select the most appropriate method for the specific procurement. In most cases,
International Competitive Bidding (ICB), properly administered, and with the
allowance for preferences for domestically manufactured goods and, where appropriate,
for domestic contractors
7
for works under prescribed conditions is the most appropriate
method. In most cases, therefore, the Bank requires its Borrowers to obtain goods,
works and services through ICB open to eligible suppliers and contractors.
8
Section II of
these Guidelines describes the procedures for ICB.
1.4 Where ICB is not the most appropriate method of procurement, other methods of

procurement may be used. Section III describes these other methods of procurement and
the circumstances under which their application would be more appropriate. The
particular methods that may be followed for procurement under a given project are
provided for in the Loan Agreement. The specific contracts to be financed under the
project, and their method of procurement, consistent with the Loan Agreement, are
specified in the Procurement Plan as indicated in paragraph 1.16 of these Guidelines.
$%*
1.5 The procedures outlined in these Guidelines apply to all contracts for goods and
works financed in whole or in part from Bank loans.
9
For the procurement of those
contracts for goods and works not financed from a Bank loan, the Borrower may adopt
other procedures. In such cases the Bank shall be satisfied that the procedures to be used
will fulfill the Borrower’s obligations to cause the project to be carried out diligently
and efficiently, and that the goods and works to be procured:
(a) are of satisfactory quality and are compatible with the balance of the project;
(b) will be delivered or completed in timely fashion; and
(c) are priced so as not to affect adversely the economic and financial viability of the
project.
+$%
1.6 To foster competition the Bank permits firms and individuals from all countries to
offer goods, works, and services for Bank-financed projects. Any conditions for
participation shall be limited to those that are essential to ensure the firm’s capability to
fulfill the contract in question
10
.
1.7 In connection with any contract to be financed in whole or in part from a Bank
loan, the Bank does not permit a Borrower to deny pre- or post-qualification to a firm
for reasons unrelated to its capability and resources to successfully perform the contract;
nor does it permit a Borrower to disqualify any bidder for such reasons. Consequently,

Borrowers should carry out due diligence on the technical and financial qualifications of
bidders to be assured of their capabilities in relation to the specific contract.
1.8 As exceptions to the foregoing:
(a) Firms of a country or goods manufactured in a country may be excluded if, (i) as a
matter of law or official regulation, the Borrower’s country prohibits commercial
7
For purposes of these Guidelines, “Contractor” refers only to a firm providing construction services.
8
See para. 1.6, 1.7, and 1.8.
9
This includes those cases where the Borrower employs a procurement agent under para. 3.10.
10
The Bank permits firms and individuals from Taiwan, China, to offer goods, works, and services for Bank-financed projects.
This is a MS Word version of the official Procurement Guidelines. If altered, this
document no longer holds its official status.
7
relations with that country, provided that the Bank is satisfied that such exclusion
does not preclude effective competition for the supply of goods or works required,
or (ii) by an act of compliance with a decision of the United Nations Security
Council taken under Chapter VII of the Charter of the United Nations, the
Borrower’s country prohibits any import of goods from, or payments to, a
particular country, person, or entity. Where the Borrower’s country prohibits
payments to a particular firm or for particular goods by such an act of compliance,
that firm may be excluded.
(b) A firm which has been engaged by the Borrower to provide consulting services for
the preparation or implementation of a project, and any of its affiliates, shall be
disqualified from subsequently providing goods, works, or services resulting from
or directly related to the firm’s consulting services for such preparation or
implementation. This provision does not apply to the various firms (consultants,
contractors, or suppliers) which together are performing the contractor’s

obligations under a turnkey or design and build contract.
11
(c) Government-owned enterprises in the Borrower’s country may participate only if
they can establish that they (i) are legally and financially autonomous, (ii) operate
under commercial law, and (iii) are not dependent agencies of the Borrower or
Sub-Borrower.
12
(d) A firm declared ineligible by the Bank in accordance with subparagraph (d) of
paragraph 1.14 of these Guidelines or in accordance with the World Bank Group
Anti-Corruption policies
13
shall be ineligible to be awarded a Bank-financed
contract during the period of time determined by the Bank.
",
1.9 The Borrower may wish to proceed with the initial steps of procurement before
signing the related Bank loan. In such cases, the procurement procedures, including
advertising, shall be in accordance with the Guidelines in order for the eventual
contracts to be eligible for Bank financing, and the Bank shall review the process used
by the Borrower. A Borrower undertakes such advance contracting at its own risk, and
any concurrence by the Bank with the procedures, documentation, or proposal for award
does not commit the Bank to make a loan for the project in question. If the contract is
signed, reimbursement by the Bank of any payments made by the Borrower under the
contract prior to loan signing is referred to as retroactive financing and is only permitted
within the limits specified in the Loan Agreement.
-.
1.10 Any firm may bid independently or in joint venture confirming joint and several
liability, either with domestic firms and/or with foreign firms, but the Bank does not
accept conditions of bidding which require mandatory joint ventures or other forms of
mandatory association between firms.
11

See para. 2.5.
12
Other than Force Account units, as permitted under para. 3.8.
13
For purposes of this sub-paragraph, the relevant World Bank Group Anti-Corruption policies are set forth in the Guidelines On
Preventing and Combating Fraud and Corruption in Projects financed by IBRD Loans and IDA Credits and Grants, and in the Anti-
corruption Guidelines for IFC, MIGA, and World Bank Guarantee Transactions.
This is a MS Word version of the official Procurement Guidelines. If altered, this
document no longer holds its official status.
8
&"#
1.11 The Bank reviews the Borrower’s procurement procedures, documents, bid
evaluations, award recommendations, and contracts to ensure that the procurement
process is carried out in accordance with the agreed procedures. These review
procedures are described in Appendix 1. The Procurement Plan approved by the Bank
14

shall specify the extent to which these review procedures shall apply in respect of the
different categories of goods and works to be financed, in whole or in part, from the
Bank loan.

1.12 The Bank does not finance expenditures for goods and works which have not been
procured in accordance with the agreed provisions in the Loan Agreement and as further
elaborated in the Procurement Plan.
15
In such cases, the Bank will declare
misprocurement, and it is the policy of the Bank to cancel that portion of the loan
allocated to the goods and works that have been misprocured. The Bank may, in
addition, exercise other remedies provided for under the Loan Agreement. Even once
the contract is awarded after obtaining a “no objection” from the Bank, the Bank may

still declare misprocurement if it concludes that the “no objection” was issued on the
basis of incomplete, inaccurate, or misleading information furnished by the Borrower or
the terms and conditions of the contract had been modified without Bank’s approval.
"&
1.13 If the Borrower wishes to refer to the Bank in procurement documents, the
following language shall be used:
“(name of Borrower) has received (or in appropriate cases ‘has applied for’) a
[loan] from the [International Bank for Reconstruction and Development] (the
“Bank”) in an amount equivalent to USD… toward the cost of (name of project),
and intends to apply a portion of the proceeds of this [loan] to eligible payments
under this contract. Payment by the Bank will be made only at the request of
(name of Borrower or designate) and upon approval by the Bank, and will be
subject, in all respects, to the terms and conditions of the [Loan] Agreement. The
[Loan] Agreement prohibits a withdrawal from the [Loan] Account for the purpose
of any payment to persons or entities, or for any import of goods, if such payment
or import, to the knowledge of the Bank, is prohibited by a decision of the United
Nations Security Council taken under Chapter VII of the Charter of the United
Nations
16
. No party other than (name of Borrower) shall derive any rights from the
Loan Agreement or have any claim to the proceeds of the [loan].”
17
,
1.14 It is the Bank’s policy to require that Borrowers (including beneficiaries of Bank
loans), as well as bidders, suppliers, and contractors and their subcontractors under
14
See paragraphs 1.16.
15
See paragraph 1.16.
16

IBRD’s General Conditions Applicable to Loans and Guarantee Agreements; Article V; Section 5.01 and IDA’s General Conditions
Applicable to Development Credit Agreements; Article V; Section 5.01
17
Substitute “credit,” “International Development Association,” and “Credit Agreement,” as appropriate.
This is a MS Word version of the official Procurement Guidelines. If altered, this
document no longer holds its official status.
9
Bank-financed contracts, observe the highest standard of ethics during the procurement
and execution of such contracts.
18
In pursuance of this policy, the Bank:
(a) defines, for the purposes of this provision, the terms set forth below as follows:
(i) “corrupt practice”
19
is the offering, giving, receiving or soliciting, directly or
indirectly, of anything of value to influence improperly the actions of another
party;
(ii) “fraudulent practice”
20
is any act or omission, including a misrepresentation,
that knowingly or recklessly misleads, or attempts to mislead, a party to
obtain a financial or other benefit or to avoid an obligation;
(iii) “collusive practice”
21
is an arrangement between two or more parties
designed to achieve an improper purpose, including to influence improperly
the actions of another party;
(iv) “coercive practice”
22
is impairing or harming, or threatening to impair or

harm, directly or indirectly, any party or the property of the party to
influence improperly the actions of a party;
(v) “obstructive practice” is
(aa) deliberately destroying, falsifying, altering or concealing of evidence
material to the investigation or making false statements to
investigators in order to materially impede a Bank investigation into
allegations of a corrupt, fraudulent, coercive or collusive practice;
and/or threatening, harassing or intimidating any party to prevent it
from disclosing its knowledge of matters relevant to the investigation
or from pursuing the investigation, or
(bb) acts intended to materially impede the exercise of the Bank’s
inspection and audit rights provided for under par. 1.14 (e) below.
(b) will reject a proposal for award if it determines that the bidder recommended for
award has, directly or through an agent, engaged in corrupt, fraudulent, collusive,
coercive or obstructive practices in competing for the contract in question;
(c) will cancel the portion of the loan allocated to a contract if it determines at any
time that representatives of the Borrower or of a beneficiary of the loan engaged in
corrupt, fraudulent, collusive, or coercive practices during the procurement or the
execution of that contract, without the Borrower having taken timely and
appropriate action satisfactory to the Bank to address such practices when they occur;
18
In this context, any action taken by a bidder, supplier, contractor, or a sub-contractor to influence the procurement process or contract
execution for undue advantage is improper.
19
For the purpose of these Guidelines, “another party” refers to a public official acting in relation to the procurement process or
contract execution]. In this context, “public official” includes World Bank staff and employees of other organizations taking or
reviewing procurement decisions.
20
For the purpose of these Guidelines, “party” refers to a public official; the terms “benefit” and “obligation” relate to the procurement
process or contract execution; and the “act or omission” is intended to influence the procurement process or contract execution.

21
For the purpose of these Guidelines, “parties” refers to participants in the procurement process (including public officials) attempting
to establish bid prices at artificial, non competitive levels.
22
For the purpose of these Guidelines, “party” refers to a participant in the procurement process or contract execution.
This is a MS Word version of the official Procurement Guidelines. If altered, this
document no longer holds its official status.
10
(d) will sanction a firm or individual, including declaring ineligible, either indefinitely
or for a stated period of time, to be awarded a Bank-financed contract if it at any
time determines that the firm has, directly or through an agent, engaged in corrupt,
fraudulent, collusive, coercive or obstructive practices in competing for, or in
executing, a Bank-financed contract; and
(e) will have the right to require that a provision be included in bidding documents
and in contracts financed by a Bank loan, a provision be included requiring
bidders, suppliers and contractors to permit the Bank to inspect their accounts and
records and other documents relating to the bid submission and contract
performance and to have them audited by auditors appointed by the Bank.
1.15. With the specific agreement of the Bank, a Borrower may introduce, into bid
forms for large contracts financed by the Bank, an undertaking of the bidder to observe,
in competing for and executing a contract, the country's laws against fraud and
corruption (including bribery), as listed in the bidding documents.
23
The Bank will
accept the introduction of such undertaking at the request of the Borrowing country,
provided the arrangements governing such undertaking are satisfactory to the Bank.

1.16. As part of the preparation of the project the Borrower shall prepare and, before
loan negotiations, furnish to the Bank for its approval, a Procurement Plan
24

acceptable
to the Bank setting forth: (a) the particular contracts for the goods, works, and/or
services required to carry out the project during the initial period of at least 18 months;
(b) the proposed methods for procurement of such contracts that are permitted under the
Loan Agreement, and (c) the related Bank review procedures
25
. The Borrower shall
update the Procurement Plan annually or as needed throughout the duration of the
project. The Borrower shall implement the Procurement Plan in the manner in which it
has been approved by the Bank.
23
As an example, such an undertaking might read as follows: “We undertake that, in competing for (and, if the award is made to us, in
executing) the above contract, we will strictly observe the laws against fraud and corruption in force in the country of the [Purchaser]
[Employer], as such laws have been listed by the [Purchaser] [Employer] in the bidding documents for this contract.”
24
If the Project includes the selection of consulting services, the Procurement Plan should also include the methods for selection of
consulting services in accordance with the Guidelines: Selection and Employment of Consultants by World Bank Borrowers. The Bank
will disclose the initial Procurement Plan to the public after the related loan has been approved; additional updates will be disclosed after
the Bank has approved them.
25
See Appendix 1
This is a MS Word version of the official Procurement Guidelines. If altered, this
document no longer holds its official status.
11

*

2.1 The objective of International Competitive Bidding (ICB), as described in these
Guidelines, is to provide all eligible prospective bidders
26

with timely and adequate
notification of a Borrower’s requirements and an equal opportunity to bid for the
required goods and works.
/%01
2.2 The bidding documents shall clearly state the type of contract to be entered into
and contain the proposed contract provisions appropriate therefor. The most common
types of contracts provide for payments on the basis of a lump sum, unit prices,
reimbursable cost plus fees, or combinations thereof. Reimbursable cost contracts are
acceptable to the Bank only in exceptional circumstances such as conditions of high risk
or where costs cannot be determined in advance with sufficient accuracy. Such contracts
shall include appropriate incentives to limit costs.
2.3 The size and scope of individual contracts will depend on the magnitude, nature,
and location of the project. For projects requiring a variety of goods and works, separate
contracts generally are awarded for the supply and/or installation of different items of
equipment and plant
27
and for the works.
2.4 For a project requiring similar but separate items of equipment or works, bids may
be invited under alternative contract options that would attract the interest of both small
and large firms, which could be allowed, at their option, to bid for individual contracts
(slices) or for a group of similar contracts (package). All bids and combinations of bids
shall be received by the same deadline and opened and evaluated simultaneously so as
to determine the bid or combination of bids offering the lowest evaluated cost to the
Borrower.
28
2.5 In certain cases the Bank may accept or require a turnkey contract under which the
design and engineering, the supply and installation of equipment, and the construction
of a complete facility or works are provided under one contract. Alternatively, the
Borrower may remain responsible for the design and engineering, and invite bids for a
single responsibility contract for the supply and installation of all goods and works

required for the project component. Design and build, and management contracting
29

contracts are also acceptable where appropriate.
30
/#20
2.6 In the case of turnkey contracts or contracts for large complex facilities or works
of a special nature or complex information and communication technology, it may be
26
See para. 1.6, 1.7 and 1.8.
27
For purposes of these Guidelines, “plant” refers to installed equipment, as in a production facility.
28
See paras. 2.49−2.54 for the bid evaluation procedures.
29
In construction, a management contractor usually does not perform the work directly but contracts out and manages the work of other
contractors, taking on the full responsibility and risk for price, quality, and timely performance. Conversely, a construction manager is a
consultant for, or agent of, the Borrower, but does not take on such risks. (If financed by the Bank, the services of the construction
manager should be procured under the Consultant Guidelines. See footnote 2.)
30
Also see paras. 3.14 and 3.15 for performance-based contracting.
This is a MS Word version of the official Procurement Guidelines. If altered, this
document no longer holds its official status.
12
undesirable or impractical to prepare complete technical specifications in advance. In
such a case, a two-stage bidding procedure may be used, under which first unpriced
technical proposals on the basis of a conceptual design or performance specifications are
invited, subject to technical as well as commercial clarifications and adjustments, to be
followed by amended bidding documents
31

and the submission of final technical
proposals and priced bids in the second stage.
34
2.7 Timely notification of bidding opportunities is essential in competitive bidding.
For projects that include ICB the Borrower is required to prepare and submit to the
Bank a draft General Procurement Notice. The Bank will arrange for its publication in
UN Development Business online (UNDB online) and in the Development Gateway’s
dgMarket).
32
The Notice shall contain information concerning the Borrower (or
prospective Borrower), amount and purpose of the loan, scope of procurement under
ICB, and the name, telephone (or fax) number, and address of the Borrower’s agency
responsible for procurement and the address of the Website where specific procurement
notices will be posted. If known, the scheduled date for availability of prequalification
or bidding documents should be indicated. The related prequalification or bidding
documents, as the case may be, shall not be released to the public earlier than the date
of publication of the General Procurement Notice.
2.8 Invitations to prequalify or to bid, as the case may be, shall be advertised as
Specific Procurement Notices in at least one newspaper of national circulation in the
Borrower’s country (or in the official gazette, or in an electronic portal with free
access). Such invitations shall also be published in UNDB online and in dgMarket.
Notification shall be given in sufficient time to enable prospective bidders to obtain
prequalification or bidding documents and prepare and submit their responses.
33
54
2.9 Prequalification is usually necessary for large or complex works, or in any other
circumstances in which the high costs of preparing detailed bids could discourage
competition, such as custom-designed equipment, industrial plant, specialized services,
some complex information and technology and contracts to be let under turnkey, design
and build, or management contracting. This also ensures that invitations to bid are

extended only to those who have adequate capabilities and resources. Prequalification
shall be based entirely upon the capability and resources of prospective bidders to
perform the particular contract satisfactorily, taking into account their (a) experience
and past performance on similar contracts, (b) capabilities with respect to personnel,
equipment, and construction or manufacturing facilities, and (c) financial position.
34
2.10 The invitation to prequalify for bidding on specific contracts or groups of similar
contracts shall be advertised and notified as described in paragraphs 2.7 and 2.8 above.
31
In revising the bidding documents in the second stage the Borrower should respect the confidentiality of the bidders’ technical
proposals used in the first stage, consistent with requirements of transparency and intellectual property rights.
32
UNDB is a publication of the United Nations. Subscription information is available from: Development Business, United Nations,
GCPO Box 5850, New York, NY 10163-5850, USA (Website: www.devbusiness.com; e-mail: ); Development
Gateway Market is an electronic portal of Development Gateway Foundation, 1889 F Street, N.W. Washington, DC 20006, USA
(Website: www.dgmarket.com).
33
See para. 2.44.
34
The Bank has prepared a Standard Prequalification Document for use by its Borrowers, where appropriate.
This is a MS Word version of the official Procurement Guidelines. If altered, this
document no longer holds its official status.
13
The scope of the contract and a clear statement of the requirements for qualification
shall be sent to those who responded to the invitation. All such applicants that meet the
specified criteria shall be allowed to bid. Borrowers shall inform all applicants of the
results of prequalification. As soon as prequalification is completed, the bidding
documents shall be made available to the qualified prospective bidders. For
prequalification for groups of contracts to be awarded over a period of time, a limit for
the number or total value of awards to any one bidder may be made on the basis of the

bidder’s resources. The list of prequalified firms in such instances shall be updated
periodically. Verification of the information provided in the submission for
prequalification shall be confirmed at the time of award of contract, and award may be
denied to a bidder that is judged to no longer have the capability or resources to
successfully perform the contract.
'
*
2.11 The bidding documents shall furnish all information necessary for a prospective
bidder to prepare a bid for the goods and works to be provided. While the detail and
complexity of these documents may vary with the size and nature of the proposed bid
package and contract, they generally include: invitation to bid; instructions to bidders;
form of bid; form of contract; conditions of contract, both general and special;
specifications and drawings; relevant technical data (including of geological and
environmental nature); list of goods or bill of quantities; delivery time or schedule of
completion; and necessary appendices, such as formats for various securities. The basis
for bid evaluation and selection of the lowest evaluated bid shall be clearly outlined in
the instructions to bidders and/or the specifications. If a fee is charged for the bidding
documents, it shall be reasonable and reflect only the cost of their printing and delivery
to prospective bidders, and shall not be so high as to discourage qualified bidders. The
Borrower may use an electronic system to distribute bidding documents, provided that
the Bank is satisfied with the adequacy of such system. If bidding documents are
distributed electronically, the electronic system shall be secure to avoid modifications to
the bidding documents and shall not restrict the access of Bidders to the bidding
documents. Guidance on critical components of the bidding documents are given in the
following paragraphs.
2.12 Borrowers shall use the appropriate Standard Bidding Documents (SBDs) issued
by the Bank with minimum changes, acceptable to the Bank, as necessary to address
project-specific conditions. Any such changes shall be introduced only through bid or
contract data sheets, or through special conditions of contract, and not by introducing
changes in the standard wording of the Bank’s SBDs. Where no relevant standard

bidding documents have been issued, the Borrower shall use other internationally
recognized standard conditions of contract and contract forms acceptable to the Bank.
.%0%
2.13 Bidders shall be required to submit bids valid for a period specified in the bidding
documents which shall be sufficient to enable the Borrower to complete the comparison
and evaluation of bids, review the recommendation of award with the Bank (if required
in the Procurement Plan), and obtain all the necessary approvals so that the contract can
be awarded within that period.
This is a MS Word version of the official Procurement Guidelines. If altered, this
document no longer holds its official status.
14
2.14 Borrowers have the option of requiring a bid security. When used, the bid security
shall be in the amount and form specified in the bidding documents
35
and shall remain
valid for a period of four weeks beyond the validity period for the bids, in order to
provide reasonable time for the Borrower to act if the security is to be called. Bid
security shall be released to unsuccessful bidders once the contract has been signed with
the winning bidder. In place of a bid security, the Borrower may require bidders to sign
a declaration accepting that if they withdraw or modify their bids during the period of
validity or they are awarded the contract and they fail to sign the contract or to submit a
performance security before the deadline defined in the bidding documents, the bidder
will be suspended for a period of time from being eligible for bidding in any contract
with the Borrower.
6
2.15 Prequalification and bidding documents and the bids shall be prepared in one of
the following languages, selected by the Borrower: English, French, or Spanish. The
contract signed with the winning bidder shall be written in the language so selected for
the bidding documents, and this language shall be the one that governs the contractual
relations between the Borrower and the winning bidder. In addition to being prepared in

English, French, or Spanish, the prequalification and bidding documents may, at the
Borrower’s option, also be prepared in the national language of the Borrower’s country
(or the language used nation-wide in the borrower’s country for commercial
transactions).
36
If the prequalification and bidding documents are prepared in two
languages, bidders shall be permitted to submit their bids in either of these two
languages. In such case, the contract signed with the winning bidder shall be written in
the language in which its bid was submitted, in which case this language shall be the
one that governs the contractual relations between the Borrower and the winning bidder.
If the contract is signed in a language other than English, French, or Spanish, and the
contract is subject to Bank’s prior review, the Borrower shall provide the Bank with a
translation of the contract in the internationally used language in which the bidding
documents were prepared. Bidders shall not be required nor permitted to sign contracts
in two languages.
%'
2.16 Bidding documents shall be so worded as to permit and encourage international
competition and shall set forth clearly and precisely the work to be carried out, the
location of the work, the goods to be supplied, the place of delivery or installation, the
schedule for delivery or completion, minimum performance requirements, and the
warranty and maintenance requirements, as well as any other pertinent terms and
conditions. In addition, the bidding documents, where appropriate, shall define the tests,
standards, and methods that will be employed to judge the conformity of equipment as
delivered, or works as performed, with the specifications. Drawings shall be consistent
with the text of the specifications, and an order of precedence between the two shall be
specified.
35
The format of the bid security shall be in accordance with the standard bidding documents and shall be issued by a reputable bank or
financial institution selected by the bidder. If the institution issuing the security is located outside the country of the Borrower, it shall
have a correspondent financial institution located in the country of Borrower to make it enforceable.

36
The Bank shall be satisfied with the language to be used.
This is a MS Word version of the official Procurement Guidelines. If altered, this
document no longer holds its official status.
15
2.17 The bidding documents shall specify any factors, in addition to price, which will
be taken into account in evaluating bids, and how such factors will be quantified or
otherwise evaluated. If bids based on alternative designs, materials, completion
schedules, payment terms, etc., are permitted, conditions for their acceptability and the
method of their evaluation shall be expressly stated.
2.18 All prospective bidders shall be provided the same information, and shall be
assured of equal opportunities to obtain additional information on a timely basis.
Borrowers shall provide reasonable access to project sites for visits by prospective
bidders. For works or complex supply contracts, particularly for those requiring
refurbishing existing works or equipment, a pre-bid conference may be arranged
whereby potential bidders may meet with the Borrower representatives to seek
clarifications (in person or online). Minutes of the conference shall be provided to all
prospective bidders with a copy to the Bank (in hard copy or sent electronically). Any
additional information, clarification, correction of errors, or modifications of bidding
documents shall be sent to each recipient of the original bidding documents in sufficient
time before the deadline for receipt of bids to enable bidders to take appropriate actions.
If necessary, the deadline shall be extended. The Bank shall receive a copy (in hard
copy format or sent electronically) and be consulted for issuing a “no objection” when
the contract is subject to prior review.
0
2.19 Standards and technical specifications quoted in bidding documents shall promote
the broadest possible competition, while assuring the critical performance or other
requirements for the goods and/or works under procurement. As far as possible, the
Borrower shall specify internationally accepted standards such as those issued by the
International Standards Organization with which the equipment or materials or

workmanship shall comply. Where such international standards are unavailable or are
inappropriate, national standards may be specified. In all cases, the bidding documents
shall state that equipment, material, or workmanship meeting other standards, which
promise at least substantial equivalence, will also be accepted.
73
2.20 Specifications shall be based on relevant characteristics and/or performance
requirements. References to brand names, catalog numbers, or similar classifications
shall be avoided. If it is necessary to quote a brand name or catalog number of a
particular manufacturer to clarify an otherwise incomplete specification, the words “or
equivalent” shall be added after such reference. The specification shall permit the
acceptance of offers for goods which have similar characteristics and which provide
performance at least substantially equivalent to those specified.
This is a MS Word version of the official Procurement Guidelines. If altered, this
document no longer holds its official status.
16

2.21 Bids for goods shall be invited on the basis of CIP
37
(place of destination) for all
goods manufactured abroad, including those previously imported, and EXW
38
(ex
works, ex factory, or off-the-shelf) plus cost of inland transportation and insurance to
the place of destination for goods manufactured or assembled in the country of the
Borrower. Bidders shall be allowed to arrange for ocean and other transportation and
related insurance from any eligible source.
39
Where installation, commissioning, or other
similar services are required to be performed by the bidder, as in the case of “supply
and installation” contracts, the bidder shall be required to quote for these services, in

addition.
2.22 In the case of turnkey contracts, the bidder shall be required to quote the price of
the installed plant at site, including all costs for supply of equipment, marine and local
transportation and insurance, installation, and commissioning, as well as associated
works and all other services included in the scope of contract such as design,
maintenance, operation, etc. Unless otherwise specified in the bidding documents, the
turnkey price shall include all duties, taxes, and other levies.
40
2.23 Bidders for works contracts shall be required to quote unit prices or lump sum
prices for the performance of the works, and such prices shall include all duties, taxes,
and other levies. Bidders shall be allowed to obtain all inputs (except for unskilled
labor) from any eligible source so that they may offer their most competitive bids.
8
2.24 Bidding documents shall state either that (a) bid prices will be fixed or (b) that
price adjustments will be made to reflect any changes (upwards or downwards) in major
cost components of the contract, such as labor, equipment, materials, and fuel. Price
adjustment provisions are usually not necessary in simple contracts involving delivery
of goods or completion of works within eighteen months, but shall be included in
contracts which extend beyond eighteen months. However, it is normal commercial
practice to obtain firm prices for some types of equipment regardless of the delivery
time and, in such cases, price adjustment provisions are not needed.
2.25 Prices may be adjusted by the use of a prescribed formula (or formulae) which
breaks down the total price into components that are adjusted by price indices specified
for each component or, alternatively, on the basis of documentary evidence (including
actual invoices) provided by the supplier or contractor. The use of the formula method
of price adjustment is preferable to that of documentary evidence. The method to be
used, the formula (if applicable), and the base date for application shall be clearly
defined in the bidding documents. If the payment currency is different from the source
37
Refer to INCOTERMS 2000 for further definitions. Published by the International Chamber of Commerce, 38 Cours Albert 1

er
, 75008
Paris, France. CIP is carriage and insurance paid to (named place of destination). This term may be used irrespective of the mode of
transport, including multimodal transport. CIP term is for custom duties and other import taxes unpaid, payment for which is the
responsibility of the Borrower, either for goods previously imported or that will be imported. For previously imported goods, the quoted
CIP price shall be distinguishable from the original import value of these goods declared to customs and shall include any rebate or
mark-up of the local agent or representative and all local costs except import duties and taxes, which will be paid by the purchaser.
38
The EXW price shall include all duties, sales, and other taxes already paid or payable for the components and raw materials used in
the manufacture or assembly of the equipment, offered in the bid.
39
See para. 1.6, 1.7 and 1.8.
40
Goods in bids for turnkey contracts may be invited on the basis of DDP (named place of destination) and Bidders should be free to
choose the best arrangement between imported goods or goods manufactured in the country of the Borrower, in the preparation of their
bids.
This is a MS Word version of the official Procurement Guidelines. If altered, this
document no longer holds its official status.
17
of the input and corresponding index, a correction factor shall be applied in the formula,
to avoid incorrect adjustment.
/
2.26 Bidding documents shall permit suppliers and contractors to arrange transportation
and insurance from any eligible source. Bidding documents shall state the types and
terms of insurance to be provided by the bidder. The indemnity payable under
transportation insurance shall be at least 110 percent of the contract amount in the
currency of the contract or in a freely convertible currency to enable prompt
replacement of lost or damaged goods. For works, a contractor’s All Risk form of
policy usually shall be specified. For large projects with several contractors on a site, a
“wrap-up” or total project insurance arrangement may be obtained by the Borrower, in

which case the Borrower shall seek competition for such insurance.
2.27 As an exception, if a Borrower wishes to reserve transportation and insurance for
the import of goods to national companies or other designated sources, bidders shall be
asked to quote FCA (named place) or CPT (named place of destination)
41
prices in
addition to the CIP (place of destination) price specified in paragraph 2.21. Selection of
the lowest evaluated bid shall be on the basis of the CIP (place of destination) price, but
the Borrower may sign the contract on FCA or CPT terms and make its own
arrangement for transportation and/or insurance. Under such circumstances, the contract
shall be limited to the FCA or CPT cost. If the Borrower does not wish to obtain
insurance coverage in the market, evidence shall be provided to the Bank that resources
are readily available for prompt payment in a freely convertible currency of the
indemnities required to replace lost or damaged goods.
%
2.28 Bidding documents shall state the currency or currencies in which bidders are to
state their prices, the procedure for conversion of prices expressed in different
currencies into a single currency for the purpose of comparing bids, and the currencies
in which the contract price will be paid. The following provisions (paragraphs
2.29−2.33) are intended to (a) ensure that bidders have the opportunity to minimize any
exchange risk with regard to the currency of bid and of payment, and hence may offer
their best prices; (b) give bidders in countries with weak currencies the option to use a
stronger currency and thus provide a firmer basis for their bid price; and (c) ensure
fairness and transparency in the evaluation process.
%
2.29 Bidding documents shall state that the bidder may express the bid price in any
currency. If the bidder wishes to express the bid price as a sum of amounts in different
foreign currencies, they may do so, provided the price includes no more than three
foreign currencies. Furthermore, the Borrower may require bidders to state the portion
of the bid price representing local costs incurred in the currency

42
of the country of the
Borrower.
41
INCOTERMS 2000 for free carrier (named place) and for carriage paid to (named place of destination), respectively.
42
Referred to hereafter as local currency.
This is a MS Word version of the official Procurement Guidelines. If altered, this
document no longer holds its official status.
18
2.30 In bidding documents for works, the Borrower may require bidders to state the bid
price entirely in the local currency, along with the requirements for payments in up to
three foreign currencies of their choice for expected inputs from outside the Borrower’s
country, expressed as a percentage of the bid price, together with the exchange rates
used in such calculations.
%
2.31 The bid price is the sum of all payments in various currencies required by the
bidder. For the purpose of comparing prices, bid prices shall be converted to a single
currency selected by the Borrower (local currency or fully convertible foreign currency)
and stated in the bidding documents. The Borrower shall make this conversion by using
the selling (exchange) rates for those currencies quoted by an official source (such as the
Central Bank) or by a commercial bank or by an internationally circulated newspaper
for similar transactions on a date selected in advance, such source and date to be
specified in the bidding documents, provided that the date shall not be earlier than four
weeks prior to the deadline for the receipt of bids, nor later than the original date for the
expiry of the period of bid validity.
%%
2.32 Payment of the contract price shall be made in the currency or currencies in which
the bid price is expressed in the bid of the successful bidder.
2.33 When the bid price is required to be stated in the local currency but the bidder has

requested payment in foreign currencies expressed as a percentage of the bid price, the
exchange rates to be used for purposes of payments shall be those specified by the
bidder in the bid, so as to ensure that the value of the foreign currency portions of the
bid is maintained without any loss or gain.
/%
2.34 Payment terms shall be in accordance with the international commercial practices
applicable to the specific goods and works.
(a) Contracts for supply of goods shall provide for full payment on the delivery and
inspection, if so required, of the contracted goods except for contracts involving
installation and commissioning, in which case a portion of the payment may be
made after the Supplier has complied with all its obligations under the contract.
The use of letters of credit is encouraged so as to assure prompt payment to the
supplier. In major contracts for equipment and plant, provision shall be made for
suitable advances and, in contracts of long duration, for progress payments during
the period of manufacture or assembly.
(b) Contracts for works shall provide in appropriate cases for mobilization advances,
advances on contractor’s equipment and materials, regular progress payments, and
reasonable retention amounts to be released upon compliance with the
Contractor’s obligations under contract.
2.35 Any advance payment for mobilization and similar expenses, made upon signature
of a contract for goods or works, shall be related to the estimated amount of these
expenses and be specified in the bidding documents. Amounts and timing of other
advances to be made, such as for materials delivered to the site for incorporation in the
This is a MS Word version of the official Procurement Guidelines. If altered, this
document no longer holds its official status.
19
works, shall also be specified. The bidding documents shall specify the arrangements
for any security required for advance payments.
2.36 Bidding documents shall specify the payment method and terms offered, whether
alternative payment methods and terms will be allowed and, if so, how the terms will

affect bid evaluation.

2.37 The bidding documents shall clearly indicate when bidders are allowed to submit
alternative bids, how alternative bids should be submitted, how bid prices should be
offered and the basis on which alternative bids shall be evaluated.

2.38 The contract documents shall clearly define the scope of work to be performed, the
goods to be supplied, the rights and obligations of the Borrower and of the supplier or
contractor, and the functions and authority of the engineer, architect, or construction
manager, if one is employed by the Borrower, in the supervision and administration of
the contract. In addition to the general conditions of contract, any special conditions
particular to the specific goods or works to be procured and the location of the project
shall be included. The conditions of contract shall provide a balanced allocation of risks
and liabilities.
0%
2.39 Bidding documents for works shall require security in an amount sufficient to
protect the Borrower in case of breach of contract by the Contractor. This security shall
be provided in an appropriate form and amount, as specified by the Borrower in the
bidding document
43
. The amount of the security may vary, depending on the type of
security furnished and on the nature and magnitude of the works. A portion of this
security shall extend sufficiently beyond the date of completion of the works to cover
the defects liability or maintenance period up to final acceptance by the Borrower;
alternatively, contracts may provide for a percentage of each periodic payment to be
held as retention money until final acceptance. Contractors may be allowed to replace
retention money with an equivalent security after provisional acceptance.
2.40 In contracts for the supply of goods, the need for performance security depends on
the market conditions and commercial practice for the particular kind of goods.
Suppliers or manufacturers may be required to provide a guarantee to protect against

nonperformance of the contract. Such security in an appropriate amount may also cover
warranty obligations or, alternatively, a percentage of the payments may be held as
retention money to cover warranty obligations, and any installation or commissioning
requirements. The security or retention money shall be reasonable in amount.
65'
2.41 Provisions for liquidated damages or similar provisions in an appropriate amount
shall be included in the conditions of contract when delays in the delivery of goods,
completion of works or failure of the goods or works to meet performance requirements
43
The format of the performance security shall be in accordance with the standard bidding documents and shall be issued by a reputable
bank or financial institution selected by the bidder. If the institution issuing the security is located outside the country of the Borrower,
it shall have a correspondent financial institution located in the country of Borrower to make it enforceable.
This is a MS Word version of the official Procurement Guidelines. If altered, this
document no longer holds its official status.
20
would result in extra cost, or loss of revenue or loss of other benefits to the Borrower.
Provision may also be made for a bonus to be paid to suppliers or contractors for
completion of works or delivery of goods ahead of the times specified in the contract
when such earlier completion or delivery would be of benefit to the Borrower.
,8
2.42 The conditions of contract shall stipulate that failure on the part of the parties to
perform their obligations under the contract will not be considered a default if such
failure is the result of an event of force majeure as defined in the conditions of contract.
$6#0'
2.43 The conditions of contract shall include provisions dealing with the applicable law
and the forum for the settlement of disputes. International commercial arbitration has
practical advantages over other methods for the settlement of disputes. Therefore, the
Bank recommends that Borrowers use this type of arbitration in contracts for the
procurement of goods and works. The Bank shall not be named arbitrator or be asked to
name an arbitrator.

44
In case of works contracts, supply and installation contracts, and
turnkey contracts, the dispute settlement provision shall also include mechanisms such
as dispute review boards or adjudicators, which are designed to permit a speedier
dispute settlement.
9+9#
/
2.44 The time allowed for the preparation and submission of bids shall be determined
with due consideration of the particular circumstances of the project and the magnitude
and complexity of the contract. Generally, not less than six weeks from the date of the
invitation to bid or the date of availability of bidding documents, whichever is later,
shall be allowed for ICB. Where large works or complex items of equipment are
involved, this period shall generally be not less than twelve weeks to enable prospective
bidders to conduct investigations before submitting their bids. In such cases, the
Borrower is encouraged to convene pre-bid conferences and arrange site visits. Bidders
shall be permitted to submit bids by mail or by hand. Borrowers may also use electronic
systems permitting bidders to submit bids by electronic means, provided the Bank is
satisfied with the adequacy of the system, including, inter alia, that the system is secure,
maintains the confidentiality and authenticity of bids submitted, uses an electronic
signature system or equivalent to keep bidders bound to their bids, and only allows bids
to be opened with due simultaneous electronic authorization of the bidder and the
Borrower. In this case, bidders shall continue to have the option to submit their bids in
hard copy. The deadline and place for receipt of bids shall be specified in the invitation
to bid.

2.45 The time for the bid opening shall be the same as for the deadline for receipt of
bids or promptly
45
thereafter, and shall be announced, together with the place for bid
44

It is understood, however, that officials of the International Centre for Settlement of Investment Disputes (ICSID) shall remain free to
name arbitrators in their capacity as ICSID officials.
45
To allow sufficient time to take the bids to the place announced for public bid opening.
This is a MS Word version of the official Procurement Guidelines. If altered, this
document no longer holds its official status.
21
opening, in the invitation to bid. The Borrower shall open all bids at the stipulated time
and place. Bids shall be opened in public; bidders or their representatives shall be
allowed to be present (in person or online, when electronic bidding is used). The name
of the bidder and total amount of each bid, and of any alternative bids if they have been
requested or permitted, shall be read aloud (and posted online when electronic bidding
is used) and recorded when opened and a copy of this record shall be promptly sent to
the Bank and to all bidders who submitted bids in time. Bids received after the time
stipulated, as well as those not opened and read out at bid opening, shall not be
considered.
4
2.46 Except as otherwise provided in paragraphs 2.63 and 2.64 of these Guidelines,
bidders shall not be requested or permitted to alter their bids after the deadline for
receipt of bids. The Borrower shall ask bidders for clarification needed to evaluate their
bids but shall not ask or permit bidders to change the substance or price of their bids
after the bid opening. Requests for clarification and the bidders’ responses shall be
made in writing, in hard copy or by an electronic system satisfactory to the Bank.
46
4%
2.47 After the public opening of bids, information relating to the examination,
clarification, and evaluation of bids and recommendations concerning awards shall not
be disclosed to bidders or other persons not officially concerned with this process until
the publication of contract award.
+ 

2.48 The Borrower shall ascertain whether the bids (a) meet the eligibility requirements
specified in paragraph 1.6, 1.7 and 1.8 of these Guidelines, (b) have been properly
signed, (c) are accompanied by the required securities or required declaration signed as
specified in paragraph 2.14 of the Guidelines, (d) are substantially responsive to the
bidding documents, and (v) are otherwise generally in order. If a bid is not substantially
responsive, that is, it contains material deviations from or reservations to the terms,
conditions, and specifications in the bidding documents, it shall not be considered
further. The bidder shall not be permitted to correct or withdraw material deviations or
reservations once bids have been opened.
47
+
2.49 The purpose of bid evaluation is to determine the cost to the Borrower of each bid
in a manner that permits a comparison on the basis of their evaluated cost. Subject to
paragraph 2.58, the bid with the lowest evaluated cost,
48
but not necessarily the lowest
submitted price, shall be selected for award.
2.50 The bid price read out at the bid opening shall be adjusted to correct any
arithmetical errors. Also, for the purpose of evaluation, adjustments shall be made for
any quantifiable nonmaterial deviations or reservations. Price adjustment provisions
46
See paragraph 2.44
47
See para. 2.50 regarding corrections.
48
See para. 2.52.
This is a MS Word version of the official Procurement Guidelines. If altered, this
document no longer holds its official status.
22
applying to the period of implementation of the contract shall not be taken into account

in the evaluation.
2.51 The evaluation and comparison of bids shall be on CIP (place of destination)
prices for the supply of imported goods
49
and EXW prices, plus cost of inland
transportation and insurance to the place of destination, for goods manufactured within
the Borrower’s country, together with prices for any required installation, training,
commissioning, and other similar services.
50
2.52 Bidding documents shall also specify the relevant factors in addition to price to be
considered in bid evaluation and the manner in which they will be applied for the
purpose of determining the lowest evaluated bid. For goods and equipment, other
factors may be taken into consideration including, among others, payment schedule,
delivery time, operating costs, efficiency and compatibility of the equipment,
availability of service and spare parts, and related training, safety, and environmental
benefits. The factors other than price to be used for determining the lowest evaluated
bid shall, to the extent practicable, be expressed in monetary terms, or given a relative
weight in the evaluation provisions in the bidding documents.
2.53 Under works and turnkey contracts, contractors are responsible for all duties,
taxes, and other levies,
51
and bidders shall take these factors into account in preparing
their bids. The evaluation and comparison of bids shall be on this basis. Bid evaluation
for works shall be strictly in monetary terms. Any procedure under which bids above or
below a predetermined assessment of bid values are automatically disqualified is not
acceptable. If time is a critical factor, the value of early completion to the Borrower
may be taken into account according to criteria presented in the bidding documents,
only if the conditions of contract provide for commensurate penalties for
noncompliance.
2.54 The Borrower shall prepare a detailed report on the evaluation and comparison of

bids setting forth the specific reasons on which the recommendation is based for the
award of the contract.
'
2.55 At the request of the Borrower, and under conditions to be agreed under the Loan
Agreement and set forth in the bidding documents, a margin of preference may be
provided in the evaluation of bids for:
(a) goods manufactured in the country of the Borrower when comparing bids offering
such goods with those offering goods manufactured abroad; and
(b) works in member countries below a specified threshold of GNP
52
per capita, when
comparing bids from eligible domestic Contractors with those from foreign firms.
49
Borrowers may ask for prices on a CIF basis (and bids compared on that same basis) only when the goods are carried by sea and the
goods are not containerized. CIF shall not be used for anything other than sea transport. In the case of manufactured goods, it is unlikely
that the choice of CIF will be appropriate, because these goods are usually containerized. CIP can be used for any mode of transport,
including sea and multimodal transport.
50
The evaluation of bids shall not take into account: (a) customs duties and other taxes levied on imported goods quoted CIP (which are
excluded of custom duties); (b) sales and similar taxes levied in connection with the sale or delivery of the goods
51
Unless bidding documents specify otherwise for some turnkey contracts (see para. 2.22 ).
52
Gross national product as defined annually by the Bank.
This is a MS Word version of the official Procurement Guidelines. If altered, this
document no longer holds its official status.
23
2.56 Where preference for domestically manufactured goods or for domestic
Contractors is allowed, the methods and stages set forth in Appendix 2 to these
Guidelines shall be followed in the evaluation and comparison of bids.

+ .%
2.57 Borrowers shall complete evaluation of bids and award of contract within the
initial period of bid validity so that extensions are not necessary. An extension of bid
validity, if justified by exceptional circumstances, shall be requested in writing from all
bidders before the expiration date. The extension shall be for the minimum period
required to complete the evaluation, obtain the necessary approvals, and award the
contract. In the case of fixed price contracts, requests for second and subsequent
extensions will be permissible only if the request for extension provides for an
appropriate adjustment mechanism of the quoted price to reflect changes in the cost of
inputs for the contract over the period of extension. Whenever an extension of bid
validity period is requested, bidders shall not be requested or be permitted to change the
quoted (base) price or other conditions of their bid. Bidders shall have the right to
refuse to grant such an extension. If the bidding documents require a bid security,
bidders may exercise their right to refuse to grant such an extension without forfeiting
their bid security, but those who are willing to extend the validity of their bid shall be
required to provide a suitable extension of bid security.
54
2.58 If bidders have not been prequalified, the Borrower shall determine whether the
bidder whose bid has been determined to offer the lowest evaluated cost has the
capability and resources to effectively carry out the contract as offered in the bid. The
criteria to be met shall be set out in the bidding documents, and if the bidder does not
meet them, the bid shall be rejected. In such an event, the Borrower shall make a similar
determination for the next-lowest evaluated bidder.
#
2.59 The Borrower shall award the contract, within the period of the validity of bids, to
the bidder who meets the appropriate standards of capability and resources and whose
bid has been determined (i) to be substantially responsive to the bidding documents and
(ii) to offer the lowest evaluated cost.
53
A bidder shall not be required, as a condition of

award, to undertake responsibilities for work not stipulated in the bidding documents or
otherwise to modify the bid as originally submitted.
$#
2.60 Within two weeks of receiving the Bank’s “no objection” to the recommendation
of contract award, the Borrower shall publish in UNDB online and in dgMarket the
results identifying the bid and lot numbers and the following information: (a) name of
each bidder who submitted a bid; (b) bid prices as read out at bid opening; (c) name and
evaluated prices of each bid that was evaluated; (d) name of bidders whose bids were
rejected and the reasons for their rejection; and (e) name of the winning bidder, and the
price it offered, as well as the duration and summary scope of the contract awarded.
53
Referred to as “lowest evaluated bidder” and “lowest evaluated bid,” respectively.
This is a MS Word version of the official Procurement Guidelines. If altered, this
document no longer holds its official status.
24
"8
2.61 Bidding documents usually provide that Borrowers may reject all bids. Rejection
of all bids is justified when there is lack of effective competition, or bids are not
substantially responsive or when bid prices are substantially higher than existing
budget. Lack of competition shall not be determined solely on the basis of the number
of bidders. Even when only one bid is submitted, the bidding process may be
considered valid, if the bid was satisfactorily advertised and prices are reasonable in
comparison to market values. Borrowers may, after the Bank’s prior approval, reject all
bids. If all bids are rejected, the Borrower shall review the causes justifying the
rejection and consider making revisions to the conditions of contract, design and
specifications, scope of the contract, or a combination of these, before inviting new
bids.
2.62 If the rejection of all bids is due to lack of competition, wider advertising shall be
considered. If the rejection is due to most or all of the bids being nonresponsive, new
bids may be invited from the initially prequalified firms, or with the agreement of the

Bank from only those that submitted bids in the first instance.
2.63 All bids shall not be rejected and new bids invited on the same bidding and
contract documents solely for the purpose of obtaining lower prices. If the lowest
evaluated responsive bid exceeds the Borrower’s pre-bid cost estimates by a substantial
margin, the Borrower shall investigate causes for the excessive cost and consider
requesting new bids as described in the previous paragraphs. Alternatively, the
Borrower may negotiate with the lowest evaluated bidder to try to obtain a satisfactory
contract through a reduction in the scope and/or a reallocation of risk and responsibility
which can be reflected in a reduction of the contract price. However, substantial
reduction in the scope or modification to the contract documents may require rebidding.
2.64 The Bank’s prior approval shall be obtained before rejecting all bids, soliciting
new bids, or entering into negotiations with the lowest evaluated bidder.
'$4
2.65 In the publication of Contract Award referred to in paragraph 2.60 the Borrower
shall specify that any bidder who wishes to ascertain the grounds on which its bid was
not selected, should request an explanation from the Borrower. The Borrower shall
promptly provide an explanation of why such bid was not selected, either in writing
and/or in a debriefing meeting, at the option of the Borrower. The requesting bidder
shall bear all the costs of attending such a debriefing.
'4

):
2.66 Where the loan provides financing for a program of imports, ICB with simplified
advertising and currency provisions may be used for large-value contracts, as defined in
the Loan Agreement.
55
54
Also see para 3.11.
55
Procurement of smaller contracts is normally carried out in accordance with procedures followed by the private or public entity

handling the imports, or other established commercial practices acceptable to the Bank, as described in para. 3.12.
This is a MS Word version of the official Procurement Guidelines. If altered, this
document no longer holds its official status.
25